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TMI Blog2008 (7) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... before the bank has taken steps for conduction of sale or auction, which is quite fatal and vitiates the proceedings. Admittedly, the entire proceedings as initiated by the bank for recovery of the said amounts after obtaining the certificate and conducting the sale etc., are much later to the orders of winding up. Therefore, having regard to the aforesaid situation and especially there being no notice issued to the Official Liquidator, the learned Single Judge has rightly held that the sale would not be sustained. - O.S.A. NO. 53 OF 2006 - - - Dated:- 18-7-2008 - B. PRAKASH RAO AND G. BHAVANI PRASAD, JJ. C.V.V. Prasad for the Petitioner . M. Anil Kumar for the Respondent. JUDGMENT B. Prakash Rao, J. - Since these t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing a proceeding in O.A. No. 1447 of 1997 before the concerned Debt Recovery Tribunal and obtained a decree. Later on, as per the procedure contemplated under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the bank has obtained certificate dated 19-1-2003 for a sum of Rs. 4,04,23,607. Consequently, the bank sought to proceed to sell the properties by way of auction on 18-12-2003 and later on, a certificate was duly issued on 22-1-2004 in favour of the auction purchaser. The appellant in O.S.A. No. 41 of 2007 claimed to have purchased the said property under a registered sale deed document bearing No. 1637 of 2005, dated 3-5-2005. 4. The main contention urged by the Official Liquidator in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the different contentions and objections raised by the Official Liquidator as to the want of notice, the learned Single Judge allowed the application following the principles laid down in the decision of the Apex Court in Rajasthan State Financial Corpn. s case ( supra ). Hence, the appeal by the bank. 7. Further, the appellant in the other appeal in O.S. No. 41 of 2007 is a subsequent third party purchaser from the auction purchaser under a registered sale deed as mentioned above and since the very auction conducted by the bank was set aside, a separate appeal is filed. 8. The main contention urged on behalf of the appellant in these appeals is to the effect that having regard to the proceedings under Recovery of Debts D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Having regard to the aforesaid uncontroverted facts, necessarily, it leads us to consider as to the effect of the sale conducted by the bank in pursuance of the certificate issued by the Debt Recovery Tribunal. There is no dispute to the fact that the company in liquidation was liable to pay certain amounts to the bank and on failure of which they obtained the decree in O.A. No. 1447 of 1999 before the Debt Recovery Tribunal and after issuance of the certificate for recovery of the said amount, sale was conducted and a certificate of sale was also issued in favour of the auction purchaser on 22-1-2004. The said property was purchased by the appellants in O.S.A. No. 41 of 2007 on 3-5-2004, however, much earlier thereto, the subject company w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Corpn. s case ( cited supra ) and it is only due to conflicting views in the said decision with that of the other decision in International Coach Builders Ltd. v. Karnataka State Financial Corpn. [2003] 43 SCL 297 , the Supreme Court has ultimately held that the notice to the Official Liquidator is mandatory. Further, it went on to hold as under : "12. In the light of the discussion as above, we think it proper to sum up the legal position thus : ( i )A Debt Recovery Tribunal acting under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 would be entitled to order the sale and to sell the properties of the debtor, even if a company in liquidation, through its Recovery Officer but only after notice t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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